MEXICO CITY, Nov 28 (Reuters) - Mexican President Claudia Sheinbaum said on Thursday that the debt burden accumulated by state energy company Pemex with suppliers would be reviewed and various payment mechanisms are being studied and refined.

Despite efforts to reduce debt under Sheinbaum's predecessor Andres Manuel Lopez Obrador, the company remains one of the world's most indebted energy companies.

"A review is being carried out, which is normal," she said during her regular news conference, without giving details.

Pemex later in the day said that it had paused any new contracts through its exploration and production unit, confirming Reuters' reporting from October.

"Pemex Exploration and Production requested a temporary suspension of the processes of solicitation, signing and modifying contract agreements which have not been formalized," Pemex said in a statement.

It denied reports that it was "freezing" contracts with service providers. Bloomberg News had reported on Wednesday that Pemex was freezing new deals with contractors.

Pemex added that the pause would be in effect until the review Sheinbaum mentioned had wrapped up. It said the process should finalize before the end of the year.

The oil producer added that more information would come soon regarding how its business needs would align with next year's proposed budget.

Earlier this week, the association that represents the interests of some of the most important oil service providers in Mexico asked Pemex to pay overdue debts totaling 103.6 billion pesos ($5.1 billion).

"This situation has caused an adverse effect on our finances and a negative impact in the areas where we operate," it said in a letter, adding that a schedule would provide certainty for operations and allow companies to fulfill their commitments.

Under the six-year administration of Sheinbaum, who took office on Oct. 1, Pemex will seek to maintain average crude oil production of 1.8 million barrels per day but its debt burden has made that challenging.

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https://www.reuters.com/markets/commodities/mexico-is-working-various-payment-mechanisms-pemex-debt-president-says-2024-11-28/